AstraZeneca vs Merck Indonesia Which Is More Lucrative?

AstraZeneca and Merck are two pharmaceutical giants with a presence in Indonesia's stock market. Both companies are leaders in the healthcare industry, but they have different approaches to business and market strategies. AstraZeneca focuses on developing innovative drugs and treatments, while Merck is known for its strong presence in the market with a wide range of products. Investors looking to capitalize on the healthcare sector in Indonesia may find these two stocks to be lucrative options with potential for growth and value.

AstraZeneca or Merck Indonesia?

When comparing AstraZeneca and Merck Indonesia, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AstraZeneca and Merck Indonesia.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AstraZeneca has a dividend yield of 2.19%, while Merck Indonesia has a dividend yield of 8.96%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AstraZeneca reports a 5-year dividend growth of 0.42% year and a payout ratio of 71.25%. On the other hand, Merck Indonesia reports a 5-year dividend growth of 3.08% year and a payout ratio of 115.53%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AstraZeneca P/E ratio at 32.17 and Merck Indonesia's P/E ratio at 12.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AstraZeneca P/B ratio is 5.13 while Merck Indonesia's P/B ratio is 2.19.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AstraZeneca has seen a 5-year revenue growth of 0.70%, while Merck Indonesia's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AstraZeneca's ROE at 16.57% and Merck Indonesia's ROE at 16.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $67.20 for AstraZeneca and Rp3460.00 for Merck Indonesia. Over the past year, AstraZeneca's prices ranged from $60.47 to $87.68, with a yearly change of 45.00%. Merck Indonesia's prices fluctuated between Rp3390.00 and Rp4400.00, with a yearly change of 29.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.